DUSHANBE, July 25, 2008, Asia-Plus  -- A tripartite loan and financing agreement of 25 million euros for the project “Rehabilitation/Reconstruction of 220‑kV-Switchyards Nurek Hydroelectric Power Station (HPS)” was signed by the German Development (KfW Entwicklungsbank) and Tajikistan’s Ministry of Finance (MoF) and Barqi Tojik (Tajik electric systems) power holding in Dushanbe on July 25.  

Speaking to reporters after a document-signing ceremony, Finance Minister Safarali Najmuddinov expressed gratitude to the German Government for inestimable assistance in carrying out reforms in Tajikistan and noted that Germany is one of main donors of Tajikistan.   

Noting that development of energy sector is one of priorities of Tajikistan’s domestic policy, the minister noted that the Nurek HPS is one of strategically important facilities for the whole power system of Central Asia.  

Najmuddinov noted that the amount provided for the project includes 25 million euros in loan and 7 million euros in grant.  According to him, the loan is repayable over 40 years at 0.75 percent annual interest with a 10-year grace period.  The project, designed for four years, will be finished before December 31, 2012.   

For his part, representative of KfW, Mr. Stefan Opis, noted that implementation of the project will improve electricity supplies in Tajikistan and promote economic development of the country.  Mr. Opis said that the next stage of the German-Tajik cooperation will be intergovernmental negotiations that will be held in October this year to determine further cooperation between Germany and Tajikistan.   

As it had been reported earlier, subsidence in some areas of the 220 kV and 500 kV air insulated switchyards (AIS) of Nurek HPS has been going for many years and could not be stopped due to geological formations in the ground.  Therefore and due to the increasing rate of failure of the outworn electrical equipment it is intended to replace and to relocate the existing switchgears by new ones in order to ensure the operation of the power plant.  Because there are no suitable locations in the close vicinity of the Nurek HPS, it is proposed to replace the existing air insulated switchgears by the compact Gas Insulated Substation (GIS) which requires less space.

It is planned to perform the project in two stages. The project, financed by the German Government comprises all investment measures of the first stage and includes the scope for the 220‑kV-GIS and all auxiliary installations and buildings while the second stage will include the scope of the 500‑kV-GIS.

  Altogether, Germany has committed grants to the amount of more than EUR 81.6 million for technical and financial cooperation since 2002, in order to assist the development of Tajikistan.

KfW Entwicklungsbank finances investment and project-related consulting services in developing countries and countries in transition. It carries out its work on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) and is committed to the primary goal of German development cooperation, namely to sustainable improve the economic and social conditions of the people in developing countries. Through its Financial Cooperation (FC) work it contributes to reducing poverty, protecting natural resources and securing peace worldwide.